82R3742 JAM-F By: Otto H.B. No. 1037 A BILL TO BE ENTITLED AN ACT relating to the creation of an alternative fuel program to be funded by the Texas emissions reduction plan fund. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 386.252(a), Health and Safety Code, as amended by Chapters 1125 (H.B. 1796) and 1232 (S.B. 1759), Acts of the 81st Legislature, Regular Session, 2009, is reenacted and amended to read as follows: (a) Money in the fund may be used only to implement and administer programs established under the plan and shall be allocated as follows: (1) for the diesel emissions reduction incentive program, 87.5 percent of the money in the fund, of which: (A) not more than four percent may be used for the clean school bus program; (B) not more than 10 percent may be used for on-road diesel purchase or lease incentives; [and] (C) a specified amount may be used for the new technology implementation grant program, from which a defined amount may be set aside for electricity storage projects related to renewable energy; (D) five percent shall be used for the clean fleet program; and (E) two percent may be used for the alternative fueling facilities program; (2) for the new technology research and development program, nine percent of the money in the fund, of which: (A) up to $200,000 is allocated for a health effects study; (B) $500,000 is to be deposited in the state treasury to the credit of the clean air account created under Section 382.0622 to supplement funding for air quality planning activities in affected counties; (C) not less than 20 percent is to be allocated each year to support research related to air quality as provided by Section 387.010; and (D) the balance is allocated each year to the commission to be used to: (i) implement and administer the new technology research and development program for the purpose of identifying, testing, and evaluating new emissions-reducing technologies with potential for commercialization in this state and to facilitate their certification or verification; and (ii) contract with the Energy Systems Laboratory at the Texas Engineering Experiment Station for $216,000 annually for the development and annual computation of creditable statewide emissions reductions obtained through wind and other renewable energy resources for the state implementation plan; and (3) two percent is allocated to the commission and 1.5 percent is allocated to the laboratory for administrative costs incurred by the commission and the laboratory. SECTION 2. Section 386.252, Health and Safety Code, is amended by adding Subsection (e) to read as follows: (e) The commission may allocate unexpended money designated for the alternative fueling facilities program to other programs described under Subsection (a) after the commission allocates money to recipients under the alternative fueling facilities program. SECTION 3. Subtitle C, Title 5, Health and Safety Code, is amended by adding Chapter 393 to read as follows: CHAPTER 393. ALTERNATIVE FUELING FACILITIES PROGRAM Sec. 393.001. DEFINITIONS. In this chapter: (1) "Alternative fuel" means a fuel other than gasoline or diesel fuel, other than biodiesel fuel, including electricity, compressed natural gas, liquified natural gas, hydrogen, propane, or a mixture of fuels containing at least 85 percent methanol by volume. (2) "Commission" means the Texas Commission on Environmental Quality. (3) "Program" means the Texas alternative fueling facilities program established under this chapter. Sec. 393.002. PROGRAM. (a) The commission shall establish and administer the Texas alternative fueling facilities program to provide fueling facilities for alternative fuel in nonattainment areas. Under the program, the commission shall provide a grant for each eligible facility to offset the cost of those facilities. (b) An entity that constructs, reconstructs, or acquires an alternative fueling facility is eligible to participate in the program. Sec. 393.003. APPLICATION FOR GRANT. (a) An entity operating in this state that constructs, reconstructs, or acquires a facility to store, compress, or dispense alternative fuels may apply for and receive a grant under the program. (b) The commission may adopt guidelines to allow a regional planning commission, council of governments, or similar regional planning agency created under Chapter 391, Local Government Code, or a private nonprofit organization to apply for and receive a grant to improve the ability of the program to achieve its goals. (c) An application for a grant under this chapter must be made on a form provided by the commission and must contain the information required by the commission. Sec. 393.004. ELIGIBILITY OF FACILITIES FOR GRANTS. (a) The commission by rule shall establish criteria for prioritizing facilities eligible to receive grants under this chapter. The commission shall review and revise the criteria as appropriate. (b) To be eligible for a grant under the program, the entity receiving the grant must agree to make the alternative fueling facility available to persons not associated with the entity at times designated by the grant agreement. (c) A recipient of a grant under this chapter is not eligible to receive a second grant under this chapter for the same facility. Sec. 393.005. RESTRICTION ON USE OF GRANT. A recipient of a grant under this chapter shall use the grant only to pay the costs of the facility for which the grant is made. The recipient may not use the grant to pay the recipient's administrative expenses. Sec. 393.006. AMOUNT OF GRANT. For each eligible facility for which a recipient is awarded a grant under the program, the commission shall award the grant in an amount equal to the lesser of: (1) 50 percent of the sum of the actual costs incurred by the grant recipient in one calendar year to construct, reconstruct, or acquire the facility; or (2) $500,000. Sec. 393.007. EXPIRATION. This chapter expires August 31, 2018. SECTION 4. The Texas Commission on Environmental Quality shall adopt rules under Section 393.004, Health and Safety Code, as added by this Act, as soon as practicable after the effective date of this Act. SECTION 5. This Act takes effect September 1, 2011.